Five Reasons to File Your Taxes ASAP
Don't wait until the last minute.
MikeTyes
Credit: Pheelings media / Shutterstock
It's tempting to wait until the last minute to file your tax return. But getting your taxes done sooner rather than later can save you time, money, and stress down the road. Here are some top reasons to tackle your tax preparation now.
Why you should do your taxes ASAP
Get your refund faster
This is the big one. If you're owed a tax refund, filing early means getting that money back more quickly. The IRS issues most refunds within 21 days of receiving your tax return, but you may wait longer as the deadline draws nearer. So file ASAP to get your refund in weeks, rather than months.
Avoid penalties
If you wait too long and miss the tax filing deadline, you may face penalties like the failure to file penalty, which is typically 5% of the tax due for each month your return is late. Get taxes out of the way now to avoid worrying about these added costs in the first place.
Uncover problems sooner
By starting early, you'll have more time to notice and correct any potential errors or issues on your return. Finding and fixing mistakes now prevents bigger headaches later if you have to amend your taxes.
Beat the last-minute rush
As the tax deadline nears, CPAs and tax prep services get bombarded with requests. File early and you can work with tax pros at your convenience rather than waiting amid the frenzied final weeks.
Prep for next year
Use your completed return as a reference to start tax planning for 2024. Look for ways to boost income, reduce expenses, maximize credits and deductions, and improve your overall financial picture for next year's taxes.
Overall, the best practice is to prepare your tax return as soon as you have all the necessary documentation, like W-2s and 1099s. Getting a head start allows you to file accurately, avoid penalties, maximize refunds, and plan ahead. Don't wait—check your tax to-do list now so you can file ASAP and mark taxes off your list.
Meredith Dietz
Senior Finance Writer
Meredith Dietz is Lifehacker’s Senior Finance Writer. She earned her bachelor’s degree in English and Communications from Northeastern University, where she graduated as valedictorian of her college. She grew up waitressing in her family restaurant in Wilmington, DE and worked at Hasbro Games, where she wrote rules for new games. Previously, she worked in the non-profit space as a Leadership Resident with the Harpswell Foundation in Phnom Penh, Cambodia; later, she was a travel coordinator for a study abroad program that traced the rise of fascist propaganda across Western Europe.
Since then, Meredith has been driven to make personal finance accessible and address taboos of talking openly about money, including debt, investing, and saving for retirement. Outside of finance writing, Meredith is a marathon runner and stand-up comedian who has been a regular contributor to The Onion and Reductress. Meredith lives in Brooklyn, NY.
